OREANDA-NEWS. February 09, 2015. US wheat rose on Friday, on course for its first weekly rise in seven weeks as hopes of an export breakthrough in Egypt lifted the market from a four-month low.

Soybean prices rose for a second day, tracking a strong rally in Malaysian palm oil futures, although gains were capped by forecasts of record production in South America.

Corn edged higher, supported by a rebound in crude oil, which was set for a second straight weekly gain.

Chicago Board of Trade March wheat has risen almost 6 percent this week, a first weekly gain for spot prices since mid-December.

CBOT March wheat was up 1.2 percent to \\$5.32 a bushel by 1318 GMT on Friday. March soybeans added 0.4 percent to \\$9.85-1/2 a bushel and corn gained 0.7 percent to \\$3.87-3/4.

Egypt could hold tenders for US wheat only to make use of a \\$100 million credit line from the United States, the country's supplies minister said on Thursday, although traders cautioned that Egypt might still be put off by high US prices.

The news followed a run of tenders by importing countries that showed a four-month low for Chicago wheat prices at the start of this week had stirred some international demand.

"Exports steering away from a very weak path are good news but are more support than a reason for an extended rally," Tobin Gorey, director of agricultural strategy for Commonwealth Bank of Australia, said in a note to clients.

"The rally might be partly relief - like finally stepping off a darkened staircase to the floor."

Chicago wheat futures lost almost 15 percent in January amid lack of demand for US supplies.

Soybeans rose as surging Malaysian palm oil futures lifted global vegetable oils markets on plans by the world's top producer Indonesia to increase biodiesel subsidies, making blending profitable.

Still, forecasts of record soybean production in South America remained a cap on prices.

Argentina will produce a record soybean crop of 57 million tonnes in the 2014-15 season, the Buenos Aires Grains Exchange said on Thursday in its first harvest forecast for this crop year. Soybeans and corn also continued to draw some strength from crude oil as both crops can go towards making biofuel.

"Corn is in positive territory since crude oil is rising.

But we're still bearish on corn as the global supply balance is very heavy," Michel Portier, head of French consultancy Agritel said.